Education
About Us
Working with TipRanks
Follow Us
Novagold Resources Inc (TSE:NG)
:NG
RESEARCH TOOLSreports
Top Page
Novagold Resources New
(NYSE MKT:NG)
Rating:40Underperform
Price Target:―
Novagold Resources New (NG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.68B
Dividend YieldN/A
Average Volume (3M)553.61K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue GrowthN/A
EPS Growth2.34%
CountryCA
Employees14
SectorBasic Materials
Sector Strength73
IndustryGold
Share Statistics
EPS (TTM)-0.21
Shares Outstanding406,897,640
10 Day Avg. Volume485,505
30 Day Avg. Volume553,610
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)9.41
Price to Sales (P/S)0.00
P/FCF Ratio-137.27
Enterprise Value/Market Cap0.62
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-76.02K
Enterprise Value/Ebitda-10.51
Forecast
1Y Price Target
C$8.30Price Target Upside28.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Novagold Resources New Business Overview & Revenue Model
Company DescriptionNovaGold Resources Inc. (NG) is a precious metals company primarily focused on the exploration and development of mineral properties in North America. The company's core asset is the Donlin Gold project, located in Alaska, which is one of the largest undeveloped gold deposits in the world. NovaGold is committed to advancing this project towards production in partnership with Barrick Gold Corporation.
How the Company Makes MoneyNovaGold Resources Inc. primarily makes money through the exploration and development of its key gold asset, the Donlin Gold project. Revenue generation for the company is expected to come from the eventual production and sale of gold extracted from this project. The company currently relies on strategic partnerships, most notably with Barrick Gold Corporation, to share the costs and risks associated with developing such a large-scale mining operation. Until production begins, NovaGold's financial strategy involves securing funding from investors and partners to continue its development activities and maintain operational stability.
Novagold Resources New Earnings Call Summary
Earnings Call Date:Jun 25, 2025
(Q2-2025)
| % Change Since: 21.16%|
Next Earnings Date:Oct 01, 2025
Earnings Call Sentiment Positive
The earnings call indicates a positive outlook for NovaGold, with significant progress in strategic partnerships, strong financial positioning, and promising project potential at Donlin Gold. However, increased net losses and extended timelines for feasibility studies temper the overall enthusiasm.Q2-2025 Updates
Positive Updates
Increased Stake in Donlin Gold Project
NovaGold successfully increased its economic interest in the Donlin Gold project from 50% to 60%, signifying confidence in the project's potential and future profitability.
Strong Treasury Position
The company's treasury increased by $225.7 million to $318.7 million at the end of the second quarter, primarily due to a public offering and private placement, ensuring funding for future activities.
Strategic Partnership with Paulson Advisors
NovaGold formed a strategic partnership with Paulson Advisors, who invested $800 million for a 40% interest in Donlin, showing strong institutional support and alignment with NovaGold's growth strategy.
High-Grade Gold Production Potential
Donlin Gold is projected to produce 1.4 million ounces annually for the first 10 years, with a grade that is double the industry average, positioning it as one of the largest potential gold mines.
Positive Permitting Progress
NovaGold's permitting process is progressing well, with federal permits secured and state permitting on track, indicating regulatory support for the Donlin Gold project.
Negative Updates
Increased Net Loss
NovaGold reported a net loss of $54.3 million in the second quarter, an increase of $40.6 million from the prior year, primarily due to a noncash charge related to warrants issued for a backstop commitment.
Higher Donlin Gold Funding Requirement
The company's share of Donlin Gold funding increased by $3.1 million due to increased site activity, and future funding requirements are expected to exceed previous guidance.
Extended Feasibility Study Timeline
The feasibility study for Donlin Gold is expected to take about two years to complete, delaying the timeline for potential construction and production.
Company Guidance
During NovaGold's second-quarter 2025 conference call, the key metrics highlighted included a net loss of $54.3 million, primarily due to a $39.6 million non-cash, non-recurring charge related to warrants issued during the Donlin Gold transaction. Excluding this, the company's G&A spending decreased while Donlin Gold expenditures increased by $3.1 million. NovaGold's treasury grew by $225.7 million to $318.7 million, fueled by a public offering and private placement generating $234.1 million. Additionally, the company expects its share of funding for Donlin Gold to exceed the previous guidance of $21.5 million, due to its increased 60% interest, and plans to issue updated guidance with its third-quarter results. The company is currently undertaking a 15,000-meter drill program in Alaska, and plans to kick off a feasibility study update later in 2025, aiming for a two-year completion timeline and a $80 million cost.Novagold Resources New Financial Statement Overview
Summary
NovaGold Resources faces significant financial challenges, with no revenue and persistent losses. The company's negative equity and reliance on debt highlight substantial financial instability.Income Statement
The company has no revenue, leading to negative profitability metrics across the board. Gross profit, EBIT, and net income are all negative, indicating a lack of operational efficiency and profitability. The lack of revenue and high operating losses are significant concerns.10
Very Negative
Balance Sheet
The balance sheet shows negative stockholders' equity, which is a major red flag. The debt-to-equity ratio is negative due to the negative equity, suggesting high financial leverage. The company's liabilities exceed its assets, which poses a risk of insolvency.20
Very Negative
Cash Flow
Negative free cash flow and operating cash flow indicate that the company is not generating cash from its operations, which is unsustainable in the long term. The company is relying on financing and investing activities to manage its cash needs.15
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | -22.00K | 0.00 | 0.00 | -7.00K | -7.00K | -7.00K |
| EBITDA | -70.22M | -24.91M | -21.77M | -45.83M | -33.82M | -28.16M |
| Net Income | -84.99M | -45.62M | -46.80M | -53.34M | -40.54M | -33.56M |
Balance Sheet | ||||||
| Total Assets | 329.30M | 109.75M | 133.29M | 159.19M | 198.85M | 224.44M |
| Cash, Cash Equivalents and Short-Term Investments | 318.74M | 101.22M | 125.75M | 125.88M | 169.12M | 121.91M |
| Total Debt | 159.65M | 152.45M | 137.55M | 124.63M | 116.13M | 110.41M |
| Total Liabilities | 164.02M | 157.17M | 141.51M | 129.29M | 120.57M | 113.71M |
| Stockholders Equity | 165.28M | -47.42M | -8.22M | 29.90M | 78.28M | 110.73M |
Cash Flow | ||||||
| Free Cash Flow | -13.16M | -12.64M | -7.79M | -12.37M | -9.66M | -10.02M |
| Operating Cash Flow | -13.16M | -12.64M | -7.79M | -12.37M | -9.86M | -10.02M |
| Investing Cash Flow | 20.48M | 9.36M | -10.33M | -12.36M | 40.39M | 4.72M |
| Financing Cash Flow | 233.87M | -174.00K | 0.00 | -2.12M | -731.00K | -1.65M |
Novagold Resources New Technical Analysis
Positive
6.47
Price Trends
5.58
Positive
5.10
Positive
4.99
Positive
Market Momentum
0.24
Negative
65.98
Neutral
96.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NG, the sentiment is Positive. The current price of 6.47 is above the 20-day moving average (MA) of 5.92, above the 50-day MA of 5.58, and above the 200-day MA of 4.99, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 65.98 is Neutral, neither overbought nor oversold. The STOCH value of 96.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NG.
Novagold Resources New Risk Analysis
Novagold Resources New disclosed 30 risk factors in its most recent earnings report. Novagold Resources New reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Novagold Resources New Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$2.74B | 14.55 | 34.73% | ― | 80.44% | 3757.72% | |
74 Outperform | $2.03B | 34.03 | 2.63% | 2.86% | 1.58% | -21.40% | |
67 Neutral | C$2.84B | ― | -43.50% | 5.90% | 42.46% | -2626.56% | |
53 Neutral | C$2.14B | ― | -28.89% | ― | 38.21% | 50.26% | |
46 Neutral | $2.12B | ― | -1.46% | ― | ― | 1.89% | |
44 Neutral | C$979.29M | -6.67 | -13.73% | 2.43% | 17.55% | -32.57% | |
40 Underperform | C$2.68B | ― | -123.35% | ― | ― | 2.34% |
* Basic Materials Sector Average
Performance Comparison
TSE:NG
Novagold Resources New
6.59
0.81
14.01%
TSE:SEA
Seabridge Gold
21.50
0.76
3.66%
TSE:CG
Centerra Gold
9.98
0.87
9.59%
TSE:WDO
Wesdome Gold Mines
18.19
4.77
35.54%
TSE:ORA
Aura Minerals
37.87
24.78
189.30%
TSE:AAUC
Allied Gold Corporation
18.54
8.55
85.59%
Novagold Resources New Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
NOVAGOLD Sets Date for 2025 Virtual Annual Shareholders Meeting
Positive
Apr 30, 2025
NOVAGOLD RESOURCES INC. announced that its 2025 Annual General Meeting of Shareholders will be held virtually on May 15, 2025. Shareholders will have the opportunity to vote on various matters, including the election of directors and executive compensation. The meeting will also feature a presentation by the company’s leadership on recent achievements, including a transaction to acquire Barrick Gold’s 50% interest in the Donlin Gold project, and the outlook for the rest of the year. The virtual format is intended to enhance accessibility and reduce the carbon footprint, reflecting the company’s commitment to sustainability.
Spark’s Take on TSE:NG Stock
According to Spark, TipRanks’ AI Analyst, TSE:NG is a Neutral.
NovaGold Resources faces significant financial hurdles, with no revenue and negative equity posing major risks. Despite this, the stock shows strong technical momentum, though it may be overbought. Positive guidance on the Donlin Gold project and a strong cash position support its potential. Nevertheless, ongoing litigation and project delays remain key concerns, impacting the stock’s attractiveness.
To see Spark’s full report on TSE:NG stock, click here.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.